Supply
Supply is from the perspective of the ___________
Producer or Supplier
Demand is from the perspective of the ____________
Comsumer or buyer
_________ is the a Latin phrase economists use meaning, " all other things held constant."
Ceteris paribus
What is a complement to cereal?
Milk
Discretionary income is....
Income after essential spending
A decrease in the supply curve means the curve moves to the ___
left
The demand curve increases in quantity as price _______
Decreases
A change in fashion trend is a factor of demand/supply (choose one)
Demand
What is a related good?
good that uses similar resources to produce
Savings is....
Income not spent
According to the supply curve, as quantity increases, price ___________________
Increases
A product that must be used in conjunction with another product
Complement
What causes the increase in quantity supply?
Increase in price
A substitute is....
a good that can be replaced due to similar use or consumption
What is luxury good in relation to income?
Demand increase when income increases (vice versa)
Explain what would happen to the demand of avocado when a health report suggests that avocado is really beneficial to general health.
1. What happen in the graph?
2. Why?
The demand will increase (demand curve shift to the right)
Consumers would demand more as it is the trend to better health
ABC Ltd sells soy milk and almond milk. The price of soy milk has increased. How does this impact on the supply of soy milk? Why?
The quantity supply of soy milk will increase.
This is because it is now more profitable to sell soy milk.
What type of good is a budget baked beans and what type of good is smoked salmon & bagels
Smoked salmon & bagels - luxury good
Ben enjoys eating baked beans for breakfast. He recently graduated from university and has just got his first job as a civil engineer. He is starting to have smoked salmon and bagels for breakfast sometimes.
Explain the change in demand of salmon and bagels
More income = NOW ABLE to buy luxury substitute, therefore more likely to switch from an inferior substitute.
McDonalds has bought a machine that would automatically fill soft drinks once the orders are placed. Explain the impact on its supply of meals. (you must state the change and explain the reason)
Supply will increased.
This is because it is now more profitable (more soft drinks produced in the same time = reduce cost OR more efficient reduce average cost) to produce soft drinks.